Bitcoin surged past $76,000 this week, reaching new record highs and bringing the next potential target level of $90,000 into focus.
Traders are closely monitoring technical indicators, suggesting that momentum could carry the cryptocurrency toward this significant resistance point. A trendline analysis, drawn from Bitcoin’s previous peaks in April and November 2021, indicates that $90,000 is the next key resistance level.
Bitcoin’s recent breakout above $70,000 represents a renewal of the uptrend from October 2023 lows, with traders viewing the $90,000 level as a potential point for profit-taking or resistance. Technical analysts note that Bitcoin’s sustained positive movement has been aided by a fresh “flip” in the MACD histogram, which signals growing bullish momentum. However, a drop below the weekly low of $66,824 could jeopardize this bullish outlook, highlighting the importance of support levels amid Bitcoin’s upward march.
The current price rally follows Donald Trump’s recent election victory, which is being viewed as a pro-crypto shift in the White House. Analysts like Galaxy Research’s Alex Thorn emphasize that, from a fundamental standpoint, the market remains strong, with Bitcoin’s price surge accompanied by steady trading volumes and interest rates. Thorn and other market experts argue that this rally does not appear to be overextended, as Bitcoin’s open interest reached new annual highs on Nov. 6.
With Trump’s election win, investors seem encouraged by the potential for regulatory relief in the crypto space, a sentiment that has also boosted alternative assets like Solana’s SOL token. Solana’s BTC-denominated price saw a significant 11% gain this week, indicating an optimistic outlook for its long-term valuation.
Meanwhile, Bitcoin’s funding rates across exchanges like Binance remain positive, reflecting optimism in the crypto market as buyers maintain positions despite the sharp price increase. Experts predict that this momentum could drive Bitcoin even further, with Thorn forecasting that Bitcoin and other digital assets could exceed current all-time highs over the next year.
As Bitcoin consolidates above $73,000, the market’s attention is on the impact of recent Federal Reserve rate cuts, which have spurred further interest in cryptocurrency as an investment alternative. This rate cut makes traditional assets like bonds less appealing to investors, a factor that could continue supporting crypto’s upward trend.
Coin Desk and Cointelegraph contributed to this report.
